Eight essays connected by various common strands. The most important one is the community of the main subject-matter: socialism, capitalism, democracy, change of system. These four expressions cover four phenomena of great and comprehensive importance. Each piece in the book deals with these and the connections between them.



One of the Leitmotifs is the "capitalism/socialism" pair of opposites. Capitalism has a history of several hundred years, while the socialist regime existed only for a few decades. But this pair of opposites was central to the history of the twentieth century. This antagonism put its stamp on political thinking, on the foreign policy and military preparedness of every country, and on some appallingly destructive armed conflicts. All these had great secondary influence on each country's economic development and the standard of living and disposition of its inhabitants.



None of the studies is confined to one country?not to Hungary or to any other. Each tries to embrace the problems common to greater units. However, the greater unit comprehended is not the same in each study. One may deal with the capitalist or socialist system in general, another will all the post-socialist countries, and a third the Central East European region. But all extend the analysis beyond the borders of one country.

Preface

1 The Coherence of the Classical System
Introduction
The Main Line of Causality
The Affinity among Elements of the System
The Prototype and the National Variations
The Soviet Effect
Verification
The Viability of the Classical System

2 The Inner Contradictions of Reform Socialism
Introduction
Transformation without a Strategy
The Evolution of a Private Sector
The Persistence of Bureaucracy
Alternative Forms of Social Organization
The Weakness of "Third Forms"
Normative Implications

3 Market Socialism? Socialist Market Economy?
Introduction
Interpretation of the Term "Market"
Interpretation 1: Marx's Concept
Interpretation 2: The Walrasian Concept
Interpretation 3: The Leninist Concept
Interpretation 4: The Social Democratic Concept
Interpretation 5: What are the Current Chinese and Vietnamese Interpretations of "Socialism"?

4 The Speed of Transformation
Introduction
Ownership Reform and Development of the Private Sector
Macroeconomic Stability
Conclusion

5 The Great Transformation of Central Eastern Europe: Success and Disappointment
Introduction
In the Context of World History
From the Perspective of Everyday Life
The Tasks of the Economists' Profession

6 What Does "Change of System" Mean?
Introduction
Positive Versus Normative Approach
A Positive Approach to the Change of System
A Positive Approach to Changing the Political Structure
The Reception of Capitalism and Democracy?A Normative Approach
"Replacing the Elite" and "Dispensing Justice"? A Normative Approach
Concluding Remarks
Appendix: The Transformation of China

7 What can Countries Embarking on Post-socialist Transformation Learn from the Experiences so Far?
Introduction
Starting Points
Some Lessons
Concluding Remarks
Appendix

8 The System Paradigm
Introduction
A System Paradigm, Not a Transformational Paradigm
A Brief Intellectual History
The Main Attributes of the System Paradigm
Post-socialist Transformation: The Great Challenge
Some other Puzzles
Failures of Prediction
Appendix: On segregation of the social science

References
Previous Publications of the Studies in this Volume
Name Index
Subject Index